+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Economic Analysis: Theory and Practice
 

Using the portfolio analysis to build the company's strategy in foreign markets

Vol. 15, Iss. 2, FEBRUARY 2016

PDF  Article PDF Version

Received: 20 January 2016

Accepted: 29 January 2016

Available online: 4 March 2016

Subject Heading: ECONOMIC ADVANCEMENT

JEL Classification: O21, O24

Pages: 13-26

Sakharov A.S. National Research University Higher School of Economics – Nizhny Novgorod, Nizhny Novgorod, Russian Federation
asakharov@hse.ru

Kornilov D.A. Nizhny Novgorod State Technical University n.a. R.E. Alekseev, Nizhny Novgorod, Russian Federation
kornilov-d@yandex.ru

Importance The globalization of business and constant growth of international trade force multinational corporations to pay more attention to strategic planning and formation of efficient business portfolio in foreign markets, taking into account the situation, multipolar relationships, cyclical and volatile economy.
Objectives The study aims to offer an improved method of company's portfolio analysis in foreign markets, using the Boston Consulting Group matrix.
Methods We apply the Boston Consulting Group matrix to develop the matrix method for planning the company's activity in external markets based on its product and regional portfolios.
Results We improved the matrix for creating the company's portfolio. The use of internal indicators of return on sales per unit and profitability from product in conjunction with the external indicator of exchange rate enables to assign the matrix to the special category, which makes it possible to take decisions on foreign markets for diversified companies. Applying this method, the company is able to determine priority areas of its operations in the particular market or with the particular product. This will help avoid unreasonable waste of resources.
Conclusions The proposed method allows companies to derive additional profit from changes in product and regional strategies, promptly plan and redistribute cash flows within the company under conditions of sharp fluctuations of exchange rates and the value of company's products in foreign markets.

Keywords: exchange rate, BCG matrix, foreign economic activity, portfolio analysis

References:

  1. Ushakova O.A. Razvitie strategicheskogo planirovaniya v mirovoi i rossiiskoi praktike [Strategic planning development in the global and Russian practices]. Vestnik Orenburgskogo gosudarstvennogo universiteta = Vestnik of Orenburg State University, 2014, no. 6, pp. 239–243.
  2. Spirina A.M. Kharakteristika teoreticheskikh podkhodov k strategicheskomu planirovaniyu na predpriyatii [Characteristics of theoretical approaches to strategic planning at the enterprise]. Molodoi uchenyi = Young Scientist, 2012, vol. 1, iss. 1, pp. 144–150.
  3. Mintzberg H., Ahlstrand B., Lampel J. Shkoly strategii. Strategicheskoe safari: ekskursiya po debryam strategii menedzhmenta [Strategy Safari: A Guided Tour Through The Wilds of Strategic Management]. St. Petersburg, Piter Publ., 2002, 330 p.
  4. Plekhanov N.A., Plekhanova A.F., Yurlov F.F. Sravnitel'naya otsenka metodov portfel'nogo analiza pri strategicheskom planirovanii i upravlenii i obosnovanie neobkhodimosti mnogokriterial'nogo vybora prinimaemykh reshenii [Comparative evaluation of methods of portfolio analysis for strategic planning and management and the rationale for multi-criteria selection of decisions]. Trudy Nizhegorodskogo gosudarstvennogo tekhnicheskogo universiteta im. R.E. Alekseeva = Transactions of Nizhny Novgorod State Technical University n.a. R.E. Alekseev, 2010, no. 4, pp. 279–283.
  5. Sakharov A.S. Strategicheskoe planirovanie predpriyatiya na osnove ego portfel'nogo analiza. V kn.: Innovatsionnye protsessy sovremennosti [Enterprise's strategic planning based on its portfolio analysis. In: Innovative processes of modern times]. Ufa, OMEGA SAINS Publ., 2014, pp. 113–115.
  6. Ansoff H.I., McDonnell E.J. Novaya korporativnaya strategiya [The New Corporate Strategy]. St. Petersburg, Piter Kom Publ., 1999, 414 p.
  7. Asaul A.N., Denisova I.V., Matveev Yu.L., Frolov V.I. Upravlenie firmoi na osnove razrabotki strategii ee razvitiya [Managing a company based on its development strategies]. St. Petersburg, Gumanistika Publ., 2003, 217 p.
  8. Tellis G.J., Crawford C.M. An Evolutionary Approach to Product Growth Theory. Journal of Marketing, 1981, vol. 45, no. 4, pp. 125–132.
  9. Vartanyan V.M., Kononenko A.V. Instrumental'nye sredstva modelirovaniya i vizualizatsii produktovoi strategii predpriyatiya [Simulation and visualization tools of the product strategy of the enterprise]. Системи обробки інформації, 2005, no. 5, pp. 188–193.
  10. Trifonova E.Yu. Metodika otsenki effektivnosti meropriyatii po realizatsii strategii predpriyatii – uchastnikov vneshneekonomicheskoi deyatel'nosti [Methods of assessing the efficiency of measures to implement strategies of enterprises involved in foreign economic activity]. Vestnik Nizhegorodskogo universiteta im. N.I. Lobachevskogo = Vestnik of Lobachevsky State University of Nizhny Novgorod, 2013, no. 3, pp. 246–251.
  11. Tsarev V.V. Otsenka ekonomicheskoi effektivnosti investitsii [Assessing the economic efficiency of investment]. St. Petersburg, Piter Publ., 2004, 464 p.
  12. Aaker D.A., McLoughlin D. Strategicheskoe rynochnoe upravlenie [Strategic Market Management: Global Perspectives]. St. Petersburg, Piter Publ., 2007, 496 p.
  13. Thompson A.A.Jr., Strickland III A.J. Strategicheskii menedzhment: kontseptsii i situatsii dlya analiza [Strategic Management: Concepts and Cases]. Moscow, Vil'yams Publ., 2006, 928 p.
  14. Bowman C. Osnovy strategicheskogo menedzhmenta [Strategy in Practice]. Moscow, Banki i birzhi, YUNITI Publ., 1997, 175 p.
  15. Trifonov V.V., Soldatov A.A. Strategiya predpriyatiya na etape stanovleniya novogo rynochnogo prostranstva [The strategy of the company at the stage of the new market space formation]. Vestnik Nizhegorodskogo universiteta im. N.I. Lobachevskogo = Vestnik of Lobachevsky State University of Nizhny Novgorod, 2013, no. 1, pp. 241–244.
  16. Grant R.M. Sovremennyi strategicheskii analiz [Contemporary Strategy Analysis]. St. Petersburg, Piter Publ., 2008, 560 p.
  17. Ansoff H.I. Strategicheskoe upravlenie [Strategic Management]. Moscow, Ekonomika Publ., 1989, 520 p.
  18. Kornilov D.A. Strategicheskoe planirovanie i ekonomicheskoe prognozirovanie [Strategic planning and economic forecasting]. Nizhny Novgorod, NNSTU named after R.E. Alekseev Publ., 2006, 215 p.
  19. Bandurin A.V. Deyatel'nost' korporatsii [Corporation activity]. Moscow, Bukvitsa Publ., 1999, 600 p.
  20. Lambin J.J. Strategicheskii marketing [Le marketing stratégique. Une perspective evropéenne]. St. Petersburg, Nauka Publ., 1996, 800 p.

View all articles of issue

 

ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

Journal current issue

Vol. 23, Iss. 3
March 2024

Archive